Peso

The Bangko Sentral ng Pilipinas raised its key policy rate by 25 basis points to 4.75% on June 18, citing "strong inflationary pressures" from high global oil and fertilizer prices tied to the Middle East conflict — and raised its 2026 inflation forecast to 6.4% — as the benchmark PSEi slipped to 6,135.35 the next day on expectations of higher yields.

Philippine headline inflation slowed to 6.8% in May from a three-year high of 7.2% in April, but it remains far above the central bank's 2–4% target as the US–Iran war keeps oil prices elevated, the peso trades near record lows, and the OECD warns the BSP may have to keep tightening — a squeeze with direct consequences for household budgets and the cost of government borrowing.